November 27, 2025
The Manufacturers Association of Nigeria, MAN, has lamented over the current borrowing costs of 30-37 per cent, describing it as unbearably high for manufacturers, hinders production and reduces the sector’s competitiveness.
In reaction to the central bank of Nigeria, CBN’s decision to retain the Monetary Policy Rate, MPR, at 27 per cent after its 2025 monetary policy committee meeting, the MAN’s Director-General, Segun Ajayi-Kadir, noted that this is unfavourable to them, stating that the cost of credit remains one of the biggest constraints facing manufacturers across the country.
He said that since the MPR remains steady, they expect a further reduction in the rate to lower the cost of borrowing for manufacturers.
The DG noted that while the CBN’s emphasis on exchange rate stability and improved forex liquidity is vital, as manufacturers rely on FX for imports, he said it is essential to reduce the cost of funds to encourage borrowing for expansion and investment.
Expressing concern over what this will do to the already struggling sector, he said persistent high lending rates will further limit access to affordable credit for manufacturers, especially those within the SMI cadre.
READ MORE; CBN Holds 303rd CBN MPC Meeting, Retain MPR At 27% To Sustain Inflation Fight.
Ajayi-Kadir, further noted that the situation is complicated by prevailing structural challenges, such as poor infrastructure, high logistics costs, inadequate electricity supply, high energy costs, and insecurity, which cumulatively raise production costs and weaken competitiveness.
He urged the Central Bank and other policymakers to, rather than alienate them, pursue policies that foster inclusive growth, incentivise manufacturing, and address binding constraints limiting the sector’s performance.
“The CBN should also strengthen its handshake with fiscal authority to promote reforms capable of unlocking the full potential of the manufacturing sector,” he said.
Looking at the current economic conditions, the decisions of the MPC, and the need for the sector to fully leverage on the emerging macroeconomic stability for productive growth, the DG urged the Central Bank to adopt a downward review of the rate in the subsequent MPC meetings to lessen the burden of high borrowing costs and incentivise long-term investments in manufacturing, particularly in capital-intensive sub-sectors.
The MAN DG, also urged the CBN to consider additional policy instruments or incentives that facilitate credit flow to the real sector of the economy, especially the manufacturing sector.
He called on the federal government to strengthen fiscal discipline while upscaling infrastructure investment to boost the sector’s supply capacity.
READ MORE; Manufacturers Decry The Return Of FOB Levy.
“The Federal Government should collaborate closely with the Central Bank of Nigeria (CBN) to stabilise the naira and manage external risks by monitoring the potential risk of capital flights because of the MPC’s corridor review that will push banks to lend more. Government should also implement complementary fiscal measures that support industrial development and promote structural reforms, especially in real sectors of the economy, including Agricultural, Manufacturing and Energy sectors, to further reduce inflationary pressure.” he said.
Calling for an urgent end to the ravaging insecurity all over the country, especially in agricultural and industrial zones, he said this will help stabilise food supply and raw material inputs.
While noting that a secure environment is critical to food security, lower inflation rate and sustained industrial growth in both urban and rural areas, MAN DG, also called on the CBN to monitor and evaluate the impacts of previous MPC pronouncements on credit access to the real sector to aid in taking informed descion.
